CANADA - ONTARIO LABOUR MARKET AGREEMENT

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					    CANADA – ONTARIO

LABOUR MARKET AGREEMENT
            CANADA-ONTARIO LABOUR MARKET AGREEMENT


Between          The Government of Canada (hereinafter referred to as
                 “Canada”), as represented by the Minister of Human Resources
                 and Skills Development, styled Minister of Human Resources
                 and Social Development

AND              The Government of Ontario (hereinafter referred to as “Ontario”)
                 as represented by the Minister of Training, Colleges and
                 Universities

WHEREAS Canada and Ontario share a common vision of a skilled, productive,
mobile, inclusive and adaptable labour force supported by a system of flexible
labour market programs and services delivered by Ontario;

WHEREAS Canada and Ontario are committed to working together to address
the labour market needs and requirements of Ontario;

WHEREAS Canada and Ontario agree that primary responsibility for the design
and delivery of labour market programs and services for individuals to support
the creation of a skilled, productive, mobile, inclusive and adaptable labour force
in Ontario rests with Ontario;

WHEREAS Ontario is striving to provide fully integrated, client focused
employment and training services for Ontarians under Employment Ontario, and
is aiming to develop the best educated and most skilled workforce in North
America to build and sustain Ontario’s prosperity and competitiveness;

WHEREAS Canada has agreed to make new investments in support of labour
market programming in Ontario by providing funding to Ontario towards the costs
of programs that address areas of current and emerging labour market priorities,
including the need to improve the labour force participation of under-represented
groups;

WHEREAS Canada and Ontario reaffirm their commitment to achieve full
compliance with their labour mobility obligations under Chapter 7 of the
Agreement on Internal Trade by April 1, 2009 in order to enable qualified workers
of one part of Canada to have access to employment opportunities in any other
part of Canada.

WHEREAS Canada is authorized to enter into this Agreement pursuant to
sections 7 and 10 of Canada’s Department of Human Resources and Skills
Development Act; and,




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WHEREAS Ontario’s Minister of Training, Colleges and Universities is authorized
to enter into this Agreement on behalf of Ontario pursuant to the general
authority of the Minister over the ministry pursuant to subsection 2(2) of Ontario’s
Ministry of Training, Colleges and Universities Act.


ACCORDINGLY, Canada and Ontario agree as follows:


INTERPRETATION

1. In this Agreement, unless the context requires otherwise,

      “Annual Plan” means the annual plan for a Fiscal Year developed by
      Ontario under subsection 22(2);

      “Canada-Ontario Labour Market Development Agreement” (LMDA) means
      the Canada-Ontario Labour Market Development Agreement entered into
      between Canada and Ontario on November 23, 2005;

      “Designated Officials” means, for Canada, the Assistant Deputy Minister,
      Skills and Employment Branch, Department of Human Resources and
      Social Development or such other official of Canada as may be
      designated by the Minister of Human Resources and Social Development
      by notice in writing to Ontario, and for Ontario, the Assistant Deputy
      Minister, Employment and Training Division or such other official of
      Ontario as may be designated by the Minister of Training, Colleges and
      Universities by notice in writing to Canada;

      “Eligible Clients” means unemployed or low skilled workers described in
      section 9;

      “Eligible Costs” means the Program Assistance Costs and Program
      Administration Costs incurred by Ontario in providing assistance to Eligible
      Clients under its Eligible Programs during the Period of the Agreement;

      “Eligible Programs” means labour market programs and services provided
      by Ontario described in section 8;

      “Employment Insurance (EI) Client” means an unemployed individual who
      is eligible for assistance under a labour market program provided by
      Ontario that is:

          (a) similar to an employment benefit established by Canada pursuant
              to Part II of the Employment Insurance Act, and




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   (b) funded by Canada under the Canada-Ontario LMDA;

“Fiscal Year” means the period commencing April 1 of a calendar year and
ending March 31 of the following calendar year;

“LMA Management Committee” means the Committee established under
section 28;

“Minister of Human Resources and Social Development” is the style used
to refer to Canada’s Minister of Human Resources and Skills Development
and every reference in this Agreement to the Minister of Human
Resources and Social Development shall be deemed to be a reference to
the Minister of Human Resources and Skills Development;

“Period of the Agreement” means the period specified in section 30;

“Program Administration Costs” means the direct and indirect internal
operating costs incurred by Ontario in developing and administering the
Eligible Programs;

“Program Assistance Costs” means
(a) the costs of financial assistance provided by Ontario under its Eligible
   Programs directly to, or on behalf of, Eligible Clients, and

(b) the costs of financial assistance or other payments provided by Ontario
    under its Eligible Programs to third party service providers for direct
    and indirect costs incurred by them, or as payment for services
    rendered by them, in relation to the provision of assistance to Eligible
    Clients under its Eligible Programs,

but do not include

   (i) payments of basic income support to an Eligible Client unless the
   payments are linked to active participation in an Eligible Program,

   (ii) payments to public or private training institutions for training
   infrastructure costs and curriculum development costs, unless those
   costs are related to the delivery of Eligible Programs, including training,
   to Eligible Clients.




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PURPOSE

2. The purpose of this Agreement is to set out:

   (a)   the shared vision of the parties, and the shared objectives and principles
         of the Agreement;
   (b)   the roles and responsibilities of the parties in the labour market;
   (c)   the general characteristics of the service delivery arrangements of
         Ontario in relation to this Agreement;
   (d)   Ontario’s Eligible Programs, the Eligible Clients of those programs, and
         the Eligible Costs of those programs for which the new investments
         provided by Canada to Ontario under this Agreement may be used;
   (e)   the basis for calculating the amount of funding to be provided by Canada
         to Ontario each Fiscal Year during the Period of the Agreement; and
   (f)   the accountability framework for the funding.


VISION, OBJECTIVES AND PRINCIPLES

3. Canada and Ontario share a common vision to create the best-educated,
   most-skilled and most flexible workforce in the world.

4. Canada and Ontario agree that the broad objectives of the Agreement are:

   (a)   Quantity - To increase the participation of Canadians and immigrants in
         the workforce to meet current and future labour requirements;

   (b)   Quality - To enhance the quality of skills; and

   (c)   Efficiency - To provide the information necessary to make informed
         labour market choices and to facilitate workforce mobility.

5. Canada and Ontario agree that the implementation of this Agreement will be
   guided by the following principles:

   (a)   Accessibility – access to comparable programs for EI Clients and clients
         who are not eligible for EI, to enhance the labour market participation of
         all Ontarians, particularly low-skilled workers and under-represented
         groups;

   (b)   Effectiveness – effective programs that draw on best practices from
         within Canada and abroad, respond to the needs of employers, and
         reflect local labour market conditions;

   (c)   Quality Client-Centred Delivery – a coherent, integrated approach to
         providing client-focused programs;



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     (d)   Fairness – principle-based arrangements with Ontario, respecting
           primary provincial responsibility for design and delivery of labour market
           programming to individuals; and

     (e)   Efficiency – improving the efficiency of the national labour market and
           strengthening the economic union by facilitating adjustment and
           removing barriers to mobility.


ROLES AND RESPONSIBILITIES

6. Canada and Ontario agree that Canada will continue to promote an efficient
   and integrated national labour market in support of the national economy,
   including the management of the Employment Insurance system. Canada
   also will continue to provide federal programs for Aboriginal peoples, youth,
   older workers and persons with disabilities.

7.    Ontario will continue to offer a variety of labour market programs and
     services, including those programs and services for EI Clients funded through
     the Canada-Ontario LMDA.


ELIGIBLE PROGRAMS

8. Ontario agrees to provide labour market programs to enhance the labour
market participation of individuals by assisting them to prepare for entry to, or
return to, employment or to otherwise obtain or keep employment or maintain
skills for employment.


ELIGIBLE CLIENTS

9. Ontario agrees to use the funding provided under this Agreement to provide
   assistance under its Eligible Programs to:

     (a) unemployed individuals who are not EI Clients, including but not limited to:
          (i) social assistance recipients;
          (ii) immigrants;
          (iii) persons with disabilities;
          (iv) older workers;
          (v) youth;
          (vi) Aboriginal peoples;
          (vii) new entrants and re-entrants to the labour market; and
          (viii) unemployed individuals previously self-employed;




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      and,

      (b) employed individuals who are low skilled, in particular, employed
         individuals who do not have a high school diploma or a recognized
         certification or who have low levels of literacy and essential skills.

10. Canada and Ontario agree that although Eligible Clients include Aboriginal
   peoples, Canada will continue to provide its own labour market programs for
   Aboriginal peoples.     Canada and Ontario agree, through the LMA
   Management Committee, to better coordinate the delivery of their respective
   programs for Aboriginal peoples.

11. Ontario will offer Eligible Programs to residents of Ontario. Ontario agrees
   not to place a minimum residency requirement on individuals seeking
   assistance under the Eligible Programs being funded under this Agreement.


SERVICE DELIVERY ARRANGEMENTS

12.(1) Ontario agrees to provide the Eligible Programs through an integrated and
   client focused service delivery network.           This network will provide a
   coordinated system for accessing the labour market programs of all
   ministries/agencies of Ontario by individuals regardless of their particular
   needs or barriers and for making appropriate linkages with educational and
   training institutions and third party service providers.

(2)     Ontario agrees to ensure that its service delivery network continues to
      provide needs assessment, case management, tracking and reporting of
      progress through interventions and follow-up upon completion of
      interventions.

13.(1) In developing and delivering its Eligible Programs, Ontario agrees to
   continue to take into account the needs of the French-language community in
   Ontario.

(2) Ontario also agrees to ensure that where there is a significant demand for
   services or for assistance under the Eligible Programs in either official
   language, individuals can obtain such services or assistance in that official
   language. In determining the areas of Ontario where there would be
   considered to be a "significant demand," Ontario agrees to use as a guideline
   the criteria for determining what constitutes "significant demand" for
   communications with, and services from, an office of a federal institution as
   set out in the Official Languages Regulations made pursuant to Canada's
   Official Languages Act.




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FINANCIAL PROVISIONS

14.(1) Subject to the terms and conditions of this Agreement, in each Fiscal Year
   during the period beginning April 1, 2008 and ending March 31, 2014,
   Canada agrees to make a contribution to Ontario in respect of the Eligible
   Costs incurred in that Fiscal Year of an amount not exceeding the amount,
   rounded to the nearest thousand, determined by the formula

             F x (K/L)

     where

     F is $500 million

     K is the total population of Ontario for the Fiscal Year; and

     L is the total population of all provinces and territories for the Fiscal Year.

(2) For the purposes of this section, the total population of Ontario for each
   Fiscal Year and the total population of all provinces and territories for that
   Fiscal Year are the respective populations as determined on the basis of the
   quarterly preliminary estimates of the respective populations on July 1 of that
   Fiscal Year released in September of that Fiscal Year by Statistics Canada.

(3) Based on the Statistics Canada quarterly preliminary estimates of the
    respective populations on July 1, 2007, the notional amount of Canada's
    maximum contribution to Ontario in Fiscal Year 2008/09 is $194,139,000.
    Canada will notify Ontario, as soon as possible following the release in
    September 2008 of the population estimates referred to in subsection (2), of
    the actual amount of the maximum contribution payable by Canada to Ontario
    in Fiscal Year 2008/09 as determined under the formula set out in subsection
    (1).

(4) For Fiscal Year 2009/10 and each subsequent Fiscal Year during the period
    referred to in subsection (1), Canada will notify Ontario at the beginning of the
    Fiscal Year of the notional amount of its maximum contribution payable under
    subsection (1) in that Fiscal Year. The notional amount will be based on the
    Statistics Canada quarterly preliminary population estimates on July 1 of the
    preceding Fiscal Year. Canada will notify Ontario of the actual amount of its
    maximum contribution in each of those Fiscal Years, as determined under the
    formula set out in subsection (1), as soon as possible following the release in
    September of each year of the Statistics Canada quarterly preliminary
    population estimates referred to in subsection (2).




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(5) Notwithstanding subsection (1), Canada may, subject to the approval of
   Canada’s Treasury Board,

      (a) permit Ontario to retain and carry forward to the next Fiscal Year, ending
          in 2013/14, the amount of any contribution paid to Ontario for a Fiscal
          Year under subsection (1) that is in excess of the amount of the Eligible
          Costs actually incurred by Ontario in that Fiscal Year, and use the amount
          carried forward for expenditures on Eligible Costs in the following Fiscal
          Year, and

      (b) re-profile the amount of any unpaid portion of Canada’s maximum
         contribution payable to Ontario, as determined under subsection (1), from
         one Fiscal Year to the next Fiscal Year, ending in 2013/14, and add that
         reprofiled amount to the maximum amount payable to Ontario in
         subsequent Fiscal Year(s) over the period of the agreement.

      For greater certainty, any amount carried forward or re-profiled under this
      subsection is supplementary to the maximum amount payable to Ontario
      under subsection (1) of this Agreement in that following Fiscal Year.

(6)     All amounts carried forward or re-profiled and paid to Ontario, or both,
      pursuant to subsection (5) must be spent by March 31, 2014. Ontario is not
      entitled to retain any such carried forward or re-profiled amounts that remain
      unexpended after March 31, 2014 nor is it entitled to retain any balance of
      Canada’s contribution for Fiscal Year 2013/14 paid pursuant to subsection (1)
      that remains unexpended at the end of that Fiscal Year. Such amounts are to
      be repaid to Canada in accordance with section 20.

15.(1) Canada’s contributions shall be used solely for defraying the Eligible
   Costs.

(2) Ontario shall be responsible for expenditures on Eligible Costs incurred each
   Fiscal Year that are in excess of the amount of Canada’s contribution in
   respect of that year under this Agreement.

16. Any payment under this Agreement is subject to there being an appropriation
   of funds by Parliament for the Fiscal Year in which the payment is to be
   made.

17.(1) Canada will make payments of its annual contribution in respect of
   Ontario’s Eligible Costs in two instalments each Fiscal Year. The first
   instalment will be paid on or about June 15 of each Fiscal Year and the
   second instalment will be paid on or about November 15.




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(2)     The amount of the first instalment will be an amount equal to 50% of
      Ontario’s projected expenditures on its Eligible Costs for the Fiscal Year, as
      set out in its Annual Plan for the year.

(3)     The amount of the second instalment will be an amount equal to the
      remainder of Ontario's projected expenditures on its Eligible Costs for the
      Fiscal Year as provided in its Annual Plan and adjusted, if necessary, to
      reflect the change between the notional and actual maximum contribution
      amounts once the actual amount of the maximum contribution has been
      determined according to subsection 14(2).

18. If Ontario has failed to provide its annual audited financial statement, as
   required under section 23, for any Fiscal Year during the Period of the
   Agreement, Canada shall withhold payment of the second instalment of its
   contribution for the following Fiscal Year until such time as Ontario provides
   the financial statement.

19.(1) Subject to subsection (2), Ontario agrees and undertakes that the funding
   provided by Canada under this Agreement shall not displace the normal
   funding level for Ontario’s existing labour market programs to enhance the
   labour market participation of the unemployed and low skilled employed
   referred to in section 9 of this Agreement but that such funding shall be used
   to support incremental labour market programs for Eligible Clients.

(2)     The undertaking in subsection (1) is not to be construed as preventing
      Ontario from shifting resources between labour market programs or from
      applying government-wide measures to control expenditures. Ontario agrees
      that in the event of an expenditure control exercise, it would not specifically
      target programs funded under this Agreement.

(3) By no later than October 1 following the end of each Fiscal Year during the
   Period of the Agreement, Ontario agrees to provide Canada with a report by
   an independent auditor that Ontario has complied, in all material respects,
   with the requirements in subsections (1) and (2).

20. Ontario shall repay to Canada any amounts paid to Ontario in excess of the
   amount to which Ontario is entitled under the Agreement. Such amounts are
   debts due to Canada and shall be repaid promptly upon receipt of written
   notice to repay.




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ACCOUNTABILITY FRAMEWORK

21. Canada and Ontario agree to an accountability framework consisting of the
   following components:

     (i) planning;
     (ii) financial reporting;
     (iii) performance measurement;
     (iv) public reporting; and
     (v) evaluation.

(i) Planning

Multi-year Plan

22.(1) For realizing the vision and achieving the objectives of this Agreement,
   Ontario agrees that the implementation of this Agreement will be guided by
   the multi-year plan set out in Annex 1. This multi-year plan will be subject to
   the subsequent Annual Plans prepared by Ontario as described in subsection
   (2).

Annual Plan

(2) Prior to the beginning of Fiscal Year 2008/09 and prior to the beginning of
    each subsequent Fiscal Year during the Period of Agreement, Ontario agrees
    to develop and share for information with the Government of Canada an
    Annual Plan relating to its Eligible Programs and make it public by October 1.
    The annual plan shall include:

     (a)   an environmental scan that provides a profile of the current labour
           market challenges in Ontario;
     (b)   a description of the Eligible Clients who are to be targeted as priorities
           in the coming year;
     (c)   a description of the priority areas for programming and intended
           objectives;
     (d)   a brief description of the Eligible Programs, planned activities and
           projected expenditures for the coming year by priority area that are
           attributable to funding provided under this Agreement;
     (e)   the results expected for the planned activities referred to in paragraph
           (d); and
     (f)   a description of the consultation process referred to in subsection (3)
           and the types of groups consulted.




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(3) In developing each Annual Plan referred to in subsection (2), Ontario agrees
   to consult with stakeholders, including business and labour representatives,
   community organizations and representatives of the French-language
   community in Ontario.

(ii) Financial Reporting

23.(1) By no later than October 1 following the end of each Fiscal Year during
   the Period of the Agreement, Ontario shall provide Canada with an audited
   financial statement of revenues received from Canada under this Agreement
   during the Fiscal Year and the Eligible Costs incurred by Ontario in relation to
   the Eligible Programs.      The financial statement shall be prepared in
   accordance with Canadian Generally Accepted Accounting Principles and
   shall show the Program Assistance Costs incurred in respect of each Eligible
   Program during the Fiscal Year, the total Program Administration Costs
   incurred during the Fiscal Year and, if applicable, the amount of any surplus
   funds being carried forward to the next Fiscal Year pursuant to subsection
   14(5).

(2) The audit shall be performed by the Auditor-General of Ontario or his/her
   designate and shall be conducted in accordance with Canadian Generally
   Accepted Auditing Standards.

(iii) Performance Measurement

24.(1) In order to measure performance of the Eligible Programs, Ontario agrees
   to collect and compile, in accordance with Annex 2, the performance indicator
   information set out in Annex 2 about the Eligible Clients, the type of
   interventions provided under the Eligible Programs and the outcomes of the
   interventions. For clarification purposes, the parties agree that no personal
   information will be provided by Ontario to Canada.

(2) Ontario agrees to provide to Canada the information referred to in subsection
   (1) which it has collected or compiled each Fiscal Year during the Period of
   the Agreement no later than five months following the end of that Fiscal Year.
   The information shall be provided in the format and manner decided jointly by
   Canada and Ontario.

(iv) Public Reporting on Results

25.(1) Canada and Ontario agree on the importance of reporting to the public on
   results achieved under this Agreement.

(2) By no later than October 1 following the end of each Fiscal Year during the
   Period of the Agreement, Ontario agrees to report to the people of Ontario on
   the results of the Eligible Programs achieved in the Fiscal Year. The report



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   shall show separately the results attributable to the funding provided by
   Canada under this Agreement.

(3) Following the end of each Fiscal Year during the Period of the Agreement,
   Canada will report annually to Canadians on the aggregate results of the
   labour market agreements with provinces and territories based on the
   performance indicator information set out in Annex 2 collected and compiled
   by all provinces and territories and provided to Canada.

(v) Evaluation

26.(1) Ontario agrees to carry out an evaluation of the impact and effectiveness
   of the Eligible Programs and the funding provided in relation thereto under
   this Agreement. The evaluation shall cover the period April 1, 2008 to March
   31, 2012 and shall be completed by March 31, 2013.

(2) In carrying out the evaluation under subsection (1), Ontario shall:

   (a)   develop an evaluation framework that adheres to commonly accepted
         evaluation practices and methodologies;
   (b)   submit the evaluation design or framework for review and
         recommendations by an independent third party external evaluator
         selected by Ontario;
   (c)   before the evaluation is conducted, share the design or framework with
         Canada for information and discussion by the LMA Management
         Committee;
   (d)   after the findings are obtained, submit the evaluation report to an
         independent third party external evaluator, selected by Ontario, for
         review before it is finalized; and
   (e)   provide a copy of the evaluation report to Canada by no later than June
         30, 2013.


YEAR 2 REVIEW

27. Canada and Ontario agree to design and conduct a joint Year 2 Review of
   the implementation of the Agreement that will be conducted in Fiscal Year
   2009/10 and completed in 2010/11. The purpose of the Year 2 Review will be
   to ensure that both Parties are properly implementing the provisions of this
   Agreement and to inform potential improvements to this Agreement.




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LABOUR MARKET AGREEMENT (LMA) MANAGEMENT COMMITTEE

28.(1) Canada and Ontario agree to establish a Canada-Ontario LMA
   Management Committee.

(2)     The LMA Management Committee will be co-chaired by the Designated
      Officials of the Parties and will meet at least twice annually or as agreed to by
      the co-chairs. The co-chairs can invite representatives from other agencies,
      departments or ministries to participate in Committee meetings as deemed
      appropriate. Where appropriate, the parties agree to schedule meetings of
      the LMA Management Committee to take place in conjunction with meetings
      of the Canada-Ontario LMDA Management Committee.

(3) The Regional Executive Head of Service Canada will be represented on the
   LMA Management Committee.

(4) The role of the LMA Management Committee includes, but is not limited to:

       (a)   overseeing the overall implementation and management of the
             Agreement;
       (b)   designing and conducting the Year 2 review referred to in section 27;
       (c)   discussing the evaluation framework referred to in section 26 (2);
       (d)   discussing Ontario’s Annual Plans;
       (e)   maintaining linkages with the planning processes under the Canada-
             Ontario LMDA; and
       (f)   sharing views on labour market programs, services and policies as well
             as broader developments in the labour market.

(5) Decisions of the LMA Management Committee will be made by consensus.
   If consensus cannot be reached, the Committee will follow the dispute
   resolution process set out in section 32.


PUBLIC ACKNOWLEDGEMENT OF FEDERAL FUNDING

29. Canada and Ontario agree on the importance of ensuring that the public is
   informed of their respective roles under this Agreement and, in particular the
   financial contribution of Canada to Ontario’s Eligible Programs. Canada and
   Ontario agree to provide information to the public in accordance with Annex 3
   to this Agreement.




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PERIOD OF THE AGREEMENT AND EFFECTIVE DATE OF FUNDING

30. This Agreement shall come into force when it is signed by both parties and
   shall terminate on March 31, 2014 unless it is terminated earlier in
   accordance with section 33. However, if the Agreement is signed prior to
   April 1, 2008, it is understood and agreed that the effective start date of the
   period in respect of which funding is to be provided under the Agreement is
   April 1, 2008.

31. Notwithstanding the termination of this Agreement, the obligations of Ontario
   under sections 20, 23 and 25 of this Agreement shall survive any termination
   and shall remain in force until they are satisfied or by their nature expire.


DISPUTE RESOLUTION

32.(1) Canada and Ontario are committed to working together and avoiding
   disputes through government-to-government information exchange, advance
   notice, early consultation, and discussion, clarification and resolution of
   issues, as they arise.

(2) If at any time either Canada or Ontario is of the opinion that the other party
   has failed to comply with any of its obligations or undertakings under this
   Agreement or is in breach of any term or condition of the Agreement, Canada
   or Ontario, as the case may be, may notify the other party in writing of the
   failure or breach. Upon such notice, Canada and Ontario will endeavour to
   resolve the issue in dispute bilaterally through their Designated Officials.

(3) If the dispute referred to in subsection (2) cannot be resolved by Designated
   Officials, then the dispute will be referred to the Deputy Minister of Human
   Resources and Social Development Canada and the Deputy Minister of
   Training, Colleges and Universities, and if it cannot be resolved by them, then
   Canada’s Minister of Human Resources and Social Development and
   Ontario’s Minister of Training, Colleges and Universities shall endeavor to
   resolve the dispute.


TERMINATION

33.    Either Canada or Ontario may terminate this Agreement by giving 12
      months’ written notice of its intention to terminate.

34. Upon termination of the Agreement under section 33, Canada shall have no
   obligation to make any further payment to Ontario in respect of Eligible Costs
   incurred after the date of termination.




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EQUALITY OF TREATMENT

35. During the term of this Agreement, if another province or territory negotiates
   a Labour Market Agreement with Canada, and if, in the reasonable opinion of
   Ontario, any provision of that agreement is more favourable to that province
   or territory than what was negotiated with Ontario, Canada agrees to amend
   this Agreement in order to afford the same treatment to Ontario, if requested
   by Ontario. The amendment shall be retroactive to the date on which the
   Labour Market Agreement with the other province or territory comes into
   force.


ANNEXES

36. The Annexes to this Agreement are an integral part of the Agreement.


AMENDMENTS

37.(1) This Agreement may be amended at any time by mutual consent of the
   parties. To be valid, any amendment shall be in writing and, subject to
   subsection (2), signed, in the case of Canada, by Canada's Minister of
   Human Resources and Social Development, and in the case of Ontario, by
   Ontario’s Minister of Training, Colleges and Universities.

(2) An amendment to any Annex to this Agreement may be made by the written
   agreement of the Designated Officials of the parties.


GENERAL

38. This Agreement, including Annexes 1 to 3, comprise the entire agreement
    entered into by the Parties with respect to the subject matter hereof.

39. This Agreement shall be interpreted according to the laws of Canada and
    Ontario.

40. This Agreement has been drafted in both official languages. However, the
    parties agree that the English version shall be the official version.




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SIGNED on behalf of Canada by the Minister of Human Resources and Skills
Development, styled Minister of Human Resources and Social Development,

at Toronto this _____day of _____________, 2008




Witness                              The Honourable Monte Solberg,
                                     Minister of Human Resources and Social
                                     Development


SIGNED on behalf of Ontario by the Minister of Training, Colleges and
Universities.

at Toronto this _____day of ____________, 2008




Witness                              The Honourable John Milloy,
                                     Minister of Training, Colleges and
                                     Universities




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                                    Annex 1

                         Ontario’s Multi-Year Plan

                             (Subsection 22 (1))


This multi-year plan is intended to provide a framework for the operation of the
Canada-Ontario Labour Market Agreement (LMA) covering the fiscal years
2008-09 to 2013-14. For the duration of the Agreement, this multi-year plan is
subject to annual plans which will take into account changes in the economic and
social environment.

Ontario Economy and Labour Market

Ontario’s economic and fiscal outlook is mixed. Over the 2002 to 2006 period,
the resilient Ontario economy grew at a modest pace despite increasing
challenges in the global economic environment. Ontario’s strong economic
fundamentals include a well-educated and highly skilled population, a diversified
industrial structure and modern infrastructure.

Ontario’s economy is currently experiencing two major sources of change:
economic restructuring due to globalization, a high Canadian dollar, and rising oil
prices; and, demographic shifts due to an aging population, a relatively low birth
rate, and high levels of immigration. Ontario’s long term prosperity will require a
focus on supporting a knowledge economy and raising the skill level of its
workers. Success will depend on integrating immigrants effectively into the
labour market, while increasing opportunities for those on the margins of society,
including people with low literacy levels, persons with disabilities, Aboriginal
peoples, older workers, and others.

While Ontario’s economy continues to expand overall, its unemployment rate
surpassed the national average for the first time in thirty years during 2007.
Ontario’s economy is projected to grow at a modest pace in 2008, strengthening
as it adjusts to the global environment. However, growth is expected to be
uneven across industries. While service industries are growing and creating jobs,
the manufacturing and forestry sectors are experiencing significant pressures.

In 2007 the manufacturing sector in Ontario lost about 63,000 workers, with
these losses concentrated in the Greater Toronto Area and Southwestern
Ontario. In the five year period between November 2002 and December 2007,
Ontario’s manufacturing sector lost 194,000 jobs, representing 56% of Canada’s
total manufacturing job losses during that period.




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Since June 2002, there have been over 9,200 layoffs in the Northern Ontario
forestry and related industry sector, which includes saw mills and pulp and paper
manufacturers. Employment in forestry and logging alone fell by almost 3,000
people between 2006 and 2007, a decline of 27%.

Capturing Opportunities

Ontario is missing economic opportunities because many people who would like
to work are not doing so. And a number of people are not working at a level
commensurate with their skills.

In 2006, almost 126,000 individuals landed in Ontario, representing about 50% of
Canada’s immigrant landings for that year. While they are relatively well
educated, recent data show that only 40% of immigrants find employment in their
chosen field or a related field within two years after arriving in Canada.
Difficulties in obtaining relevant Canadian experience and having foreign
credentials recognized are key barriers.

Consequently, many immigrants face hardships when trying to integrate into the
Canadian labour market. In 2006, the unemployment rate of immigrants in
Ontario who had landed between 2001 and 2006 was 11%, more than double the
rate of 4.4% for the Canadian-born population. The situation was worst for
young immigrants (aged 15- 24), especially women whose unemployment rate
was 19.9%, twice the rate of Canadian-born counterparts (9.8%).

Despite having one of the most highly educated populations in the world, Ontario
faces significant challenges in the distribution of literacy skills among its
population. The 2003 International Adult Literacy and Skills survey indicated that
42% of working age (16-65) Ontarians lacked the literacy skills needed to work in
a complex labour market environment. In numeracy, about 50% of Ontario’s
working age population scored at or above the standard.

Over the past decade, Ontario’s population of Aboriginal peoples (First Nations
people, Métis or Inuit) grew to more than 242,000, or 21 per cent of Canada’s
total Aboriginal population. The 2001 Census showed that 34% of Aboriginal
peoples lack a high school diploma, compared to 20% of non-Aboriginal people.
They also faced a high unemployment rate: 14.7%, more than double the rate of
6.0% for non-Aboriginal people.

In 2001, an estimated 4.4 million Canadians—one out of every seven in the
population---reported a disability. Ontarians reported a disability rate of 15.5%---
slightly higher than the national rate. In 2001, the disability rate among Ontario’s
working-age population (15-64 years) was 11%. Persons with disabilities were
also less likely to participate in the labour force. When they did participate, they
were more likely to be unemployed. The unemployment rate for persons with




                                                                                 19
disabilities was 9.7% in 2001, almost twice as high as the rate for persons
without disabilities, 5.8%.

To fulfill their potential, Ontarians need opportunities to improve their skills and to
apply them in the workplace.

Ontario Skills Priorities

The Ontario government is investing in people and communities with a vision that
Ontario will have the most educated people and highly skilled workforce in North
America in order to build the province’s competitive advantage. Ontario is
continuing to implement the $6.2 billion Reaching Higher plan for postsecondary
education. In addition, the government has established Employment Ontario –
Ontario’s training and employment network. Through Employment Ontario, the
Ontario government has committed to:

        Provide effective, relevant skills training and other employment and career
        planning services, where and when they are needed
        Enable Ontarians to access the services and support they need to
        succeed in today’s job market
        Provide a single point of access to employment and training programs and
        services that individuals and employers need
        Respond to the needs of employers, job seekers, apprentices, new
        Canadians
        Ensure service excellence and public satisfaction with our programs and
        services

In addition to Employment Ontario, Ontario is investing to help newcomers settle,
improve their language skills and find jobs through training programs. The
Ministry of Economic Development and Trade works with communities facing
significant challenges, such as the loss of a major employer, to help them build a
successful future. Ontario also works with municipalities and other partners to
improve transitions to employment for clients of Ontario Works and the Ontario
Disability Support Program.

New resources being made available through the Canada-Ontario Labour Market
Agreement will allow Ontario to supplement its current efforts in the labour
market with new investments in four principal areas:

   1.   Technical Skills Training
   2.   Labour Market Integration of Immigrants
   3.   Foundation Skills Training and Supports
   4.   Labour Market Supports for Persons with Disabilities

Priorities will be developed and managed within a network providing integrated
and excellent service delivery. Each year, a portion of resources will be devoted



                                                                                    20
to developing capacity and managing new investments. Ontario’s objectives will
include:

1. Technical Skills Training
   •  Increase access to timely, relevant and effective training opportunities to
      assist eligible clients with occupationally- specific training that supports
      labour market attachment
   •  Bridge skills gaps to grow Ontario’s labour supply
   •  Help meet the demand for skilled tradespersons
   •  Address cost as a barrier to skills training for the 70 per cent of
      unemployed Ontarians who are not eligible for EI-funded training
   •  Increase opportunities to gain recognized certification to meet demand for
      certified workers, including the skilled trades
   •  Develop mechanisms to ensure that supported training is in areas of
      employer demand
   •  Meet the needs of new entrants and re-entrants to the labour market,
      youth, older workers, Aboriginal peoples, persons previously self-
      employed, and others
   •  Build on current assistance provided under Ontario Skills Development
      and Apprenticeship programs

2. Labour Market Integration of Immigrants
   •  Create opportunities for internationally-trained individuals to quickly meet
      regulatory and employer requirements in professions, trades and other
      occupations with focused bridge training projects and financial support to
      lower costs of participating
   •  Ensure the availability of financial supports for credential assessment
   •  Increase opportunities to obtain Canadian work experience through
      mentoring, coaching and other supports for work experience
   •  Ensure coordinated approaches with existing Ontario employment
      services as well as settlement services, Bridge Training and language
      training supported by the Ontario Ministry of Citizenship and Immigration
      and Citizenship and Immigration Canada

3. Foundation Skills Training and Supports
   • Improve access to literacy and essential skills training to persons facing
     barriers to face-to face delivery, including those in rural and remote
     communities, by expanding the electronic delivery channel and necessary
     community supports
   • Ensure availability of foundation skills training tailored to specific trades
     and occupations to increase access to higher skill training and
     employment, such as apprenticeship, to build Ontario’s learning
     advantage and grow the labour supply in demand areas
   • Create new opportunities for foundation skills training in the workplace for
     clients who have gaps in their literacy and essential skills




                                                                               21
   •   Develop services and information products to assist people with lower
       levels of foundation skills to increase labour force attachment
   •   Meet the needs of new entrants and re-entrants to the labour market,
       youth, older workers, Aboriginal peoples, persons previously self-
       employed, and others
   •   Ensure consistency of client assessments with existing services to
       improve adult literacy

4. Labour Market Supports for Persons with Disabilities
   •  Remove barriers to participation in training and employment services,
      such as sign language interpreters, alternate formats, and attendant care
   •  Increase availability of employer incentives to train on the job, including
      accommodations and enhancements in the workplace
   •  Coordinate services supported by several Ontario ministries to address
      the needs of persons with disabilities
   •  Coordinate programs across the provincial government to meet the needs
      of persons with disabilities




                                                                              22
                   1. Technical Skills Training     2. Labour Market Integration         3. Foundation Skills           4. Labour Market
LMA Priority                                               of Immigrants                Training and Supports      Supports for Persons with
                                                                                                                           Disabilities
                   Increased skill levels and       Faster integration of           Increased level of             Increased participation of
                   increased opportunities for      internationally trained         foundation skills to           persons with disabilities
                   employment for Eligible          individuals to work in their    increase opportunities for     in labour market training
                   Client groups.                   fields (with recognized         employment                     and employment services
   Outcome
                                                    accreditation where                                            and increased
    Sought
                                                    appropriate) and increased                                     opportunities for
                                                    opportunities for employment.                                  employment.


                   •   Unemployed individuals       Internationally-trained         •    Unemployed                Persons with disabilities
                       who are not EI Clients       individuals who are:                 individuals who are       who are:
                   •   Employed individuals         • Unemployed individuals             not EI Clients            • Unemployed
                       who are low skilled, in         who are not EI Clients       •    Employed individuals         individuals who are
                       particular, those who do     • Employed individuals who           who are low skilled, in      not EI Clients
                       not have a high school          are low skilled, in               particular, those who     • Employed individuals
                       diploma or a recognized         particular, those who do          do not have a high           who are low skilled, in
                       certification or who have       not have a high school            school diploma or a          particular, those who
Eligible Clients       low levels of literacy and      diploma or a recognized           recognized                   do not have a high
                       essential skills                certification or who have         certification or who         school diploma or a
                                                       low levels of literacy and        have low levels of           recognized
                                                       essential skills                  literacy and essential       certification or who
                                                                                         skills                       have low levels of
                                                                                                                      literacy and essential
                                                                                                                      skills



                                 Year 1: $138M                      Year 1: $16M                  Year 1: $34M                  Year 1: $6M
  Projected
                                 Year 2: $138M                      Year 2: $16M                  Year 2: $34M                  Year 2: $6M
    Eligible
                                 Year 3: $138M                      Year 3: $16M                  Year 3: $34M                  Year 3: $6M
 Expenditures
                                 Year 4: $138M                      Year 4: $16M                  Year 4: $34M                  Year 4: $6M
 annually and
                                 Year 5: $138M                      Year 5: $16M                  Year 5: $34M                  Year 5: $6M
over 6 Years of
                                 Year 6: $138M                      Year 6: $16M                  Year 6: $34M                  Year 6: $6M
the Agreement
    ($1.2B)
                               TOTAL: $828M                       TOTAL: $96M                 TOTAL: $204M                    TOTAL: $36M




                                                                                                                         23
                                      ANNEX 2

                   PERFORMANCE INDICATOR INFORMATION

                                    (Section 24)


1. Canada and Ontario acknowledge that groups who are underrepresented in
   the labour market often have multiple barriers that are affected only in part
   through labour market interventions, and that these multiple barriers must be
   taken into account in interpreting and reporting to the public the results of
   labour market interventions provided to such clients.

2. Subject to sections 3 and 4 of this Annex, Ontario agrees to
   (a) collect and compile the information set out below based on tracking
       service activities and on samples of activities and Eligible Clients; and,
   (b) provide the information to Canada, in a format and manner to be decided
       jointly by Canada and Ontario, no later than five months following the end
       of each fiscal year:

(i) Eligible Client indicators

   (a) Total number of Eligible Clients served/in training by employment status
       (that is, employed, unemployed, self-employed).

   (b) Education level of Eligible Clients prior to intervention, as follows:
        •    Number of clients served with less than high school
        •    Number of clients served with high school
        •    Number of clients served with post secondary education

   (c) Number of Eligible Clients served in an intervention by designated client
       group (that is, Aboriginal peoples, immigrants, older workers, persons with
       disabilities, women, youth)

(ii) Service Delivery Indicators

   (a) Number of Eligible Clients participating in interventions by intervention
       type

   (b) Proportion of Eligible Clients “satisfied” with service received upon
      completion of the intervention

(iii) Eligible Client Outcome and Impact Indicators

       (a)   Proportion of Eligible Clients who have completed their intervention,
             by intervention type.



                                                                                24
        (b)   Proportion of Eligible Clients who, 3 months and 12 months after
              leaving the intervention, are:
                   (i) employed,
                   (ii) unemployed, or
                   (iii) continuing in an intervention

        (c)   Number of Eligible Clients who have earned credentials or
              certification through participation in the intervention.

        (d)   Average hourly earnings of Eligible Clients following the intervention.

        (e)   Proportion of Eligible Clients who, 3 months and 12 months after
              leaving the intervention, indicate their training helped prepare them
              for future employment.

3. The parties acknowledge and agree that:

     (a) Ontario will begin to collect or compile the Eligible Client Outcome and
         Impact Indicators referred to in paragraphs 2 (iii)(b) and (e) in fiscal year
         2009/10 and will begin providing that information to Canada in 2010 or by
         such later date(s) as may be mutually agreed to by the Designated
         Officials, and

     (b) Ontario will begin to collect or compile the Eligible Client Outcome and
         Impact Indicators referred to in paragraphs 2 (iii)(c) and (d) in fiscal year
         2010/11 and will begin providing that information to Canada in 2011 or by
         such later date(s) as may be mutually agreed to by the Designated
         Officials.

4.     The parties acknowledge that Ontario’s ability to collect and compile
     information about Eligible Clients must be done in accordance with the laws
     of Ontario including the Freedom of Information and Protection of Privacy Act.
     This means that Ontario may not be able to collect certain information without
     self-identification, voluntary response or consent of clients. Ontario agrees to
     make best efforts to encourage Eligible Clients to self-identify, voluntarily
     respond or provide any necessary consent, as applicable. In cases where the
     quality of information is in serious question, either party may raise the matter
     for discussion and clarification at the LMA Management Committee.




                                                                                   25
                                     ANNEX 3

                              PUBLIC INFORMATION

                                    (Section 29)

The purpose of this Annex to the Canada-Ontario Labour Market Agreement is to
describe how Ontario will ensure that Canada’s contributions are appropriately
acknowledged by Ontario, as well as by third parties in receipt of funds provided
under this Agreement.

1. Canada and Ontario will jointly prepare public information material and jointly
   organize and participate in any public announcement relating to the signing of
   the Canada-Ontario Labour Market Agreement.

2.     Ontario agrees to acknowledge Canada’s support of Ontario’s Eligible
     Programs in signage, advertising, posters, exhibits, pamphlets, brochures,
     forms for the use of clients, news releases, public announcements, program
     descriptions and correspondence, and public reports on Ontario’s Eligible
     Programs.

3. Ontario agrees to ensure that third party offices, where programs and services
   to clients funded under this Agreement are delivered, will have appropriate
   identification indicating that the programs and services provided at that office
   are funded in whole or in part by Canada.

4.     Canada and Ontario agree to cooperate to provide opportunities for
     announcements, ceremonies, celebrations, and releases of reports to allow
     representatives of Canada and Ontario to clearly articulate the role of each
     government in supporting Ontario’s Eligible Programs.

5.    Ontario agrees to ensure that cheques or deposit statements for clients
     receiving assistance under Ontario Eligible Programs, either directly from
     Ontario or through an organization receiving funding from Ontario, will include
     the Government of Canada word mark.

6.    Canada and Ontario agree to consult and give each other reasonable
     advance notice of any major public relations initiatives to inform Canadians of
     activities being undertaken in the context of this Agreement.




                                                                                 26